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This thesis provides a quantitative analysis of the effectiveness of domestic subsidies on both product and sector levels in creating comparative advantages. It examines a comprehensive dataset covering over 100 countries, more than 5000 products, and 400 sectors from 2009 to 2022 and utilizes Event Study Analysis with fixed effects to assess subsidies\' impacts. The findings suggest a positive correlation between domestic subsidies and comparative advantages, especially at the sector level,...
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